Medical Office, Northridge
- Address: 9535 Reseda Blvd, Northridge, CA
- Building Area: 34,904 SF
- Land Area: 73,616 SF
- Occupancy: 100%
- Year Built: 1966, Renovated in 2000
- Sales prise – $9,300,000
- Prise/SF – $266,45
- Cap Rate – 7.75%
A medical office building located ncar the Northridge Hospital. The seller undertook a major renovation of the building in 2000, followed by a lease up of the property. The owner, Burt Bachmman of Galpin Ford Motors, wanted to leverage his equlty and buy a more passive asset: after tax income was the major goal.
A buyer was in a 1031 exchange and wanted to expand their tenant in common. A medical office near a hospital was their criteria. With rental rates on the rise, their strategy was to cash flow the asset without the need for major remodels or lease up. This property perfectly fit their needs.
They were the Black Swan willing to pay the highest price out of over 20 offers.
The seller received a heny pnce for this asset and decided to teverage up to two walgreens for stable passive cash fiow and ease of management.